Sive,
I have the deepest respect for you analysis but I do not see how BF Buy @ 1.4304 has been invalidated. Maybe you see something that I don't see. Please give explanation. Otherwise, I will be looking for buy signal in that area.
Thank you very much for your observation and comments.
Respectfully,
Rick
Hi Rick,
Well, if we will follow to strict rules of Butterfly, then, you're possibly right and I'm wrong:
Initial swing has held all follows retracements and then market has accelerated to the down side.
But, I do not like to see in Butterflies when they are not quite reach the target, but move below the low of initial swing.
Then it shows all way back. Now it comes down again. See on picture.
The nature of batterfly is reversal. But here I see just wash and rinses of previous lows.
If butterfly has not quite reached the target but shows strong reversal - it should go to its extension in opposite direction, right?
But butterfly hasn't done it. Say, current behaviour is not very typical for butterfly.
Although theoretically you're right, we can treat it in this way, but the price action does not impress me much. But who has said, that it should
.
So, may it be it will work as you expect. The low in circle on chart and follows price action confuse me a bit (in terms of butterfly).
